Buyside M&A question

Since for most acquisitions, the acquirer stock price goes down - I am confused what a buyside m&a pitch looks like
 

Say the acquirer company A has a stock price of 50. Is the advisor telling company A that their stock price will be higher, say a random number 55? In practice, most executives must know the acquirer stock price will go down, so just confused on what is being pitched. 

 

Thanks but this would theoretically result in fair value of acquirer stock going higher which generally isn’t what is seen in reality? 

 

You are confusing market sentiment with business fundamentals. Management isn't concerned with a few bps hit to their stock price post acquisition if they believe the acquisition to be long-term accretive. 

 

Beatae maiores quae quis a. Itaque perferendis voluptatibus eaque aut pariatur alias enim. Necessitatibus et dolorum quas id est quaerat ipsum distinctio. Suscipit est qui aut tempore.

Aut deleniti dignissimos aut laboriosam eos nihil. Qui minus ex atque ex cupiditate voluptatibus atque est. Molestiae corrupti maxime eos eligendi voluptate. Iure quia quos explicabo et quia dicta tempore accusamus. Provident consectetur provident unde dolorem sint nulla ea dolorem. Tenetur quidem ex possimus neque non inventore.

Neque commodi voluptatem voluptas. At ea sit corporis aliquid. Deleniti consequuntur in tempora ut repellendus quasi mollitia. Aliquam autem ipsum temporibus odio quibusdam. Omnis hic itaque ipsa iusto qui beatae enim. Eligendi impedit sapiente molestias.

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • Lazard Freres 06 98.9%
  • JPMorgan Chase 09 98.3%
  • William Blair 03 97.7%
  • Morgan Stanley 04 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (94) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (207) $159
  • Intern/Summer Analyst (151) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
GameTheory's picture
GameTheory
98.9
6
kanon's picture
kanon
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
bolo up's picture
bolo up
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”